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contents
Notice of AGM
Board of Directors
Management
Bankers
Directors' report
Auditors' report
Accounts
Balance sheet
Profit & loss account
Statement of the changes in equity
Cash flow statement
Notes to the accounts
Schedule of fixed asset
IDCOL profile
Prospects of Renewable Energy in Bangladesh
Shonchalok
The Twelfth Annual General Meeting of the Shareholders of Infrastructure Development Company
Limited will be held on Tuesday, 24 November 2009 at 7:30 p.m. at Dhaka Sheraton Hotel, Dhaka.
Agenda for the meeting are :
1. To consider and adopt Board of Directors' report of the Company and the Accounts of the
Company with Auditors' Report thereon for the year ended on 30 June 2009.
2. To declare dividends of the Company for the FY 2008-2009.
3. To consider increase of Company's paid up capital to Tk. 66 crore.
4. To elect Director(s) in place of those retire in accordance with the regulations 79, 80 and are
Dated, Dhaka
05 November 2009
By order of the Board of Directors
(S. M. Formanul Islam)
Company Secretary
5. To appoint auditor(s) and fixing up their remuneration for the FY 2009-2010.
6. Any other business.
You are requested to kindly attend the meeting.
eligible for re-election in accordance with the regulation 81 of schedule-I of the Companies
Act,1994.
02
notice of the 12th annual general meeting
board of directors
M Musharraf Hossain BhuiyanChairman, IDCOL and
Secretary, Economic Relations Division
Dr. M. Fouzul Kabir KhanDirector, IDCOL and
Former Secretary, Power Division
Maj. Gen. Amjad Khan Chowdhury (Retd.)Director, IDCOL andCEO, PRAN Group
Latifur RahmanDirector, IDCOL and
Chairman, Transcom Group
Islam SharifExecutive Director and CEO
Rashed Maksud KhanDirector, IDCOL and
Former President, Thai-BangladeshChamber of Commerce and Industries
Kazi M. Aminul IslamDirector, IDCOL and
Former Secretary, Chief Advisor's Office
Dr. Mohammad TarequeDirector, IDCOL and
Secretary, Finance Division
03
management
S. M. Formanul IslamDirector (Legal) and Company Secretary
Nazmul HaqueDirector (Investment)
Md. Nazmul Haque FaisalSenior Programme Manager (NDBMP)
Hirak Al-HammadSenior Investment Officer (Technical)
Nusrat RobSenior Accounts Officer
Md. Mizanur RahmanAccounts Officer
Farhan RezaLoan Officer
Md. Mainul HoqueLegal Counsel
Farzana HussainInvestment Officer (Technical)
Sadia HaqueLoan Officer
S. M. Monirul IslamGeneral Manager (Accounts and Admin)
Md. Enamul Karim PavelAssistant Director (Loans)
Saif Ush Shaherin Internal Auditor
Farzana RahmanSenior Investment Officer
Rashed MinhazSenior Investment Officer (Marketing)
Mohammad Wahidur RahmanSenior Investment Officer (Technical)
M. Miran Hossain Investment Officer
Tasrina Zaman Investment Officer
Md. Mahfuzur RahmanInvestment Officer (Technical)
Tamiz Uddin MullickAccounts Officer
Registered OfficeUTC Building, Leve-16
8 Panthapath, Kawranbazar
Dhaka-1215, Bangladesh
Tel : 9114385, 8111235
8117526, 9143157
Fax : 8116663
www.idcol.org
Business Hours10:00 a.m. to 6:00 p.m.
Sunday to Thursday
AuditorsS. F. Ahmed & Co.Chartered AccountantsHouse-25, Road-13A, Block-DBanani, Dhaka-1213
Legal AdvisorsA. J. Mohammad Ali
Huq & Company
Law Associates
Law Valley
Syed Ishtiaq and Associates
Islam SharifExecutive Director and CEO
04
Bangladesh Bank
Head Office, Dhaka-1000Motijheel, Dhaka-1000
The City Bank Ltd.
Kawranbazar Branch, Dhaka-1215
BRAC Bank Ltd.
Dhaka
Standard Chartered Bank Ltd.
Dhaka
Mutual Trust Bank Ltd.
Dhaka
Jamuna Bank Ltd.
Dhaka
First Security Islami Bank Ltd.
Dhaka
The Premier Bank Ltd.
Dhaka
Delta Brac Housing Finance Corporation Ltd.
Dhaka
Janata Bank Ltd.
Sher-e-Bangla Nagar Branch, Dhaka-1207Local Office, Dhaka-1000
Prime Bank Ltd.
Kawranbazar Branch, Dhaka-1215
Dhaka Bank Ltd.
Dhaka
National Credit & Commerce Bank Ltd.
Dhaka
Bank Alfalah Ltd.
Dhaka
One Bank Ltd.
Dhaka
Standard Bank Ltd.
Dhaka
EXIM Bank Ltd.
Dhaka
Shahjalal Islami Bank Ltd.
Dhaka
IDLC Finance Ltd.
Dhaka
05
bankers
Dear Shareholders,
The Directors of your Company have the pleasure of submitting before you their annual report
together with the audited accounts of your Company for the year ended on 30 June 2009.
Overview of the country's financial sector
Despite global economic challenges and number of natural disasters hitting the country, the
economic and financial performance of Bangladesh in FY2008-2009 was resilient. The growth
momentum was maintained and foreign currency reserves increased.
The Bangladesh economy achieved a growth of 5.9 percent in FY2009 slightly lower than 6.21
percent of FY 2008 mainly due to global economic slowdown. This performance was facilitated by
4.6 percent growth in agriculture, 5.9 percent growth in industry sector and 6.3 percent growth in
service sector. Per capita GDP in FY 2009 reached to USD 621 and per capita GNI rose to USD 690.
The inflation stood at 6.7 at the end of June 2009 compared to 9.93 percent at the end of June
2008.
The export earnings of the country stood at USD 15.56 billion, which was 10.31 percent higher
than the export earnings (USD 14.11 billion) in FY 2007-08. This growth in export is mainly due
to increase in Knitwear (16.21%), Woven Garments (14.54%), Textile fabrics (14.65%),
Pharmaceuticals (6.21%), and Chemical fertilizer (53.63%) exports. Imports in FY2009 rose by only
4.1%, mainly due to sharp fall in imports of food items and capital machinery. As a result, the
trade deficit narrowed to $4.7 billion in FY2009, from $5.3 billion in FY2008.
Remittance inflows from non-resident Bangladeshi were USD9.68 billion at the end of FY 2009,
with an increase by 22.32 percent. As a result overall balance of payment showed a notable
surplus of USD 2.1 billion. The gross foreign exchange reserve held by Bangladesh Bank stood at
USD 7.5 billion at the end of FY 2009. The nominal rate of Taka-USD exchange rate remained
mostly stable during the fiscal year with a slight depreciation from BDT 68.52 per USD to BDT
69.1 per USD at the end of June 2009.
Operational Performance of IDCOL
During the year, the Company's paid up capital was increased from BDT 400 million to BDT 500
million and the loan portfolio was diversified covering various infrastructure sectors like power,
telecommunication, IT etc. With a 147.5 percent increase in asset base, your Company achieved
after tax income growth by nearly 52 percent. Shareholders equity also experienced more than
32% growth over the last year.
Infrastructure Development Company Limited (IDCOL)Directors Report to the Shareholders as required by section 184 of the Companies Act, 1994
Report of the Directors for the period 01 July 2008 to 30 June 2009
06
directors' report
directors' report
Company activities and achievements
Major activities and achievements of the Company during this period are discussed below.
Increase of Company's paid up capital
An additional amount of BDT 100 million from the retained earnings of the last fiscal has been used to raise the paid up capital of the company to BDT 500 million. With a vision to become the national development finance institution, IDCOL is committed to make its capital structure as per global standards as soon as practicable. The Company plans to further increase its paid-up capital up to its authorised limit of BDT 1,000 million using each year's retained earnings.
Status of IDCOL loans
As of 30 June 2009, IDCOL did not have any classified loan. All loans were current in terms of
recovery, except for Panama Hilli Port Link Ltd. and Panama Sonamasjid Port Link Ltd. who did
not repay loans that fell due on 15 June 2009. However, the projects were being closely
monitored by the Lenders. Necessary actions under the Finance and Security documents would be
taken against the borrowers if they fail to settle their outstanding in a short period of time.
During the period, DNS Satcomm Limited and Malancha Holdings Limited fully prepaid their
loans.
During the reporting period, the Company maintained the role of market leader in private sector
energy and infrastructure financing in Bangladesh. Most of the revenues during the period came
from interests on loans and advances and income from renewable energy projects. Profitability
indicators show a downward trend in ROA in 2009 pertaining to the acquisition of substantial
amount of assets during the last quarter of the reporting period and the cap on the corporate
lending rate set by the Bangladesh Bank at 13%. However, the ROE exhibited an upward trend with
28% in 2009
07
Monitoring of Meghnaghat Power Ltd. (MPL) loan
During the reporting period, the Company effectively monitored its loans to MPL. All principal
repayments, interests and fees due under the loan agreements were duly received. IDCOL, on
behalf of the Government, received USD 6.74 million as interest, USD 5.13 million as principal
repayment under its senior and subordinated loans, and USD 0.19 million as IDCOL monitoring
fees.
IDCOL solar program
During this period, 15 Partner Organizations (POs) of IDCOL installed about 1,15,060 solar home
systems in the rural areas of Bangladesh leading the total number of installation to 320,000. IDCOL
disbursed BDT 1,162 million as credit and BDT 300 million as grant to all POs. IDCOL also received BDT
84 million as principal repayment, BDT 103 million as interest on behalf of the Government and BDT
100 million as IDCOL fees under the program.
National Domestic Biogas and Manure Programme
A total of 9,200 domestic size biogas plants have been constructed under the program of which 4,000
have been constructed during the reporting period. A total of 12 villages have been declared as Biogas
Villages (each village having more than 20 biogas plants) under the program. The program is being
implemented by 22 POs. IDCOL received BDT 2.43 million as interest and BDT 1.67 million as fees under
the program during the reporting period.
IDCOL's biomass programme
The 250kW biomass gasification based power plant of Dreams Power Ltd. is operating successfully.
About 300 households as well as small and medium commercial enterprises are being supplied
electricity by the Project. IDCOL received BDT 0.31 million as interest from this Project in the reporting
year. Moreover, an amount of BDT 6.7 million has been approved as additional loan to the Project for
financing its further expansion of which BDT 3.2 million has been disbursed during the reporting period.
Financing of 33.75 MW Summit Power Limited expansion project
IDCOL earlier approved a term loan of BDT 200 million out of BDT 1,250 million syndicated term loan
facility arranged for the project. During the reporting period, IDCOL received BDT 18.25 million as
interest and BDT 29.19 million as principal repayment.
Financing of Ranks Tel PSTN project
BDT 14 million has been disbursed to Ranks Tel PSTN project during the period. IDCOL earlier approved a
term loan of BDT 50 million out of BDT 900 million syndicated term loan facility arranged for the project.
During the reporting period, IDCOL received BDT 1.03 million as interest payment from the project.
directors' report
08
directors' report
Financing of GrameenPhone cellular network expansion project
An amount of BDT 125 million has been disbursed for GrameenPhone cellular network expansion project during the period. Earlier, IDCOL sanctioned a term loan of BDT 150 million to this project. Interest payment of BDT 15.72 million has been received by IDCOL during the period.
Financing of 34.5 MW power plant at Dhaka EPZ
An investment of BDT 200 million has been made by IDCOL for the development and operation of a 34.5MW power plant by Malancha Holdings Limited (MHL) at Dhaka Export Processing Zone. The company received BDT 29.08 million as interest payment during the period.
Financing of a CNG refuelling station
IDCOL approved financing of a CNG refuelling station at Kouchakuri, Mirpur, Gazipur by Thermex Trade Limited. BDT 31.65 million has been approved by IDCOL for this project of which BDT 13.6 million has been disbursed during the period. IDCOL has received interest payment of BDT 3.06 million during the period.
Financing of four small power plants with total capacity of 110 MW
BDT 600 million has been disbursed by IDCOL as term loan out of a syndicated term loan facility of BDT 3,955 million to Summit Purbanchol Power Company Limited (SPPCL) and Summit Uttaranchol Power Company Limited (SUPCL). IDCOL has received interest payment of BDT 26 million during the period.
Financing of 50-kW biogas based electricity generation plant of Rashid Krishi Khamar Limited
An amount of BDT 0.4 million has been disbursed for the electricity generation plant of Rashid Krishi Khamar Limited during the period. IDCOL sanctioned a term loan of BDT 0.8 million and 1.6 million grant to the project.
Financing of 34.5 MW rental power plant of Venture Energy Resources Limited
An amount of BDT 193 million has been disbursed to Venture Energy Resources Limited for their 34.5 MW rental power project at Bhola during the period. Interest payment of BDT 6.7 million has been received by IDCOL during the period
Financing of 51-MWrental power plant of Barakatullah Eelectro Dynamics Limited
IDCOL arranged an amount of BDT 1250 million syndicate term loan facility for the project of which IDCOL's participation was BDT 500 million. An amount of BDT 363 million has been disbursed under the loan and interest payments of BDT 19.30 million have been received by IDCOL during the reporting period.
Financing of IT enabled services industry under Shonchalok
An amount of BDT 9.2 million has been channelled to the IT enable services industry through a credit line to Premier Bank Ltd. under the Shonchalok program and BDT 0.14 million has been received as interest payment during the reporting period.
Financing of Inland Container Depot and Container Freight Station
BDT 150 million has been sanctioned by IDCOL as term loan out of a syndicated term loan facility of BDT 640 million to BM Company Limited (BMCL) for inland container depot and container freight station project.
09
directors' report
Short-term InvestmentDuring the reporting period, IDCOL earned an amount of BDT 106 million from fixed deposit investments and call money transactions.
Contribution to exchequerSince its inception in 1997, IDCOL had paid BDT 421 million as corporate income tax to the national exchequer out of which BDT 178 million have been paid during the reporting period.
Other activitiesWith assistance from U.S. Agency for International Development (USAID), IDCOL and United States Energy Association (USEA) jointly organised a workshop on Clean Energy Applications (CEA). 30
IDCOL observed 'Biogas Week 2009' to promote the National Domestic and Biogas Manure Program. During the week, 12 villages, with more than 20 biogas plants in each village, have been declared as Biogas Villages. Begum Matia Chowdhury, Minster for Agriculture, People's Republic of Bangladesh inaugurated the program.
Under IDCOL's solar and biogas programs, about 16,000 direct jobs have been created for diploma engineers, technicians, masons, local youths and other professionals.
A total of 50 professionals from banks and financial institutions, corporate houses, government agencies etc. have been trained on project finance and financing modelling in 2 training programs.
PersonnelLed by an Executive Director and CEO, the IDCOL team comprises a Company Secretary and Director (Legal), a Director (Investment), a General Manager (Accounts & Administration), an Assistant Director (Loans), a Senior Manager (NDBMP), three Senior Investment Officers, one Senior Accounts Officer, five Investment Officers, two Loan Officers, two Accounts Officers and one Legal Counsel. In order to meet the organizational needs and to face future challenges, the executives and officers of the company regularly participated in various training courses, seminars and workshops. In order to cope with the expanded work volume of the Company, four new officers have been recruited during the year. Mr. Islam Sharif joined IDCOL as the CEO in place of Mr. M. Ehsanul Haque.
AccountsDuring the reporting period, the total revenue of the Company was BDT 445.5 million out of which BDT 29 million was received as fee income from the projects financed; BDT 88.2 million as income from renewable energy projects; BDT 217.6 million as interest on loans and advances; and BDT 105.7 million as income from short-term investments.
During the same period, the Company's operating expenses were BDT 27.8 million. Overall,
during the reporting period the Company has earned, before tax and provision, a profit of BDT
417.7 million. Provision for loans and advances of BDT 26.6 million and provision for tax of BDT
178.2 million have been made. The retained earning of the Company at the commencement of the
reporting period was BDT 108.0 million, out of which BDT 100 million had been used to increase
Company's paid-up capital. Retained earning at the end of the reporting period was BDT 221
million. The Board has proposed payment of BDT 50 million as dividends to the Government and
issuance of bonus share of BDT170 million to increase Company's paid up capital to BDT 670
million leaving a balance of BDT1 million as retained earning to be carried forward to the Financial
Year 2009-2010.
10
directors' report
Auditors
Shareholders had appointed M/s. S. F. Ahmed & Co. as auditors for the Company's accounts for the
Financial Year 2008-2009.
Significant events during post-reporting period
GTZ has signed a Financing Agreement with IDCOL to provide EURO 2.2 million grant to
IDCOLfor 50,000 solar home systems.
The World Bank has signed a Financing Agreement with the Government to provide USD
100million to IDCOL for financing installation of 300,000 solar home systems and other
renewable energy programs.
IDCOL has been proposed to act as the Coordinating/ Managing Entity to avail CDM benefits for
the Efficient Lighting Initiative Programme of the Government under which 10.5 million
incandescent bulbs will be replaced with compact fluorescent lamps (CFLs) with financial
support from the World Bank.
The Credit Rating Agency of Bangladesh Limited (CRAB) conducted a credit rating of IDCOL for
the period up to September 2009 and retained AA1 rating in the long term and ST-1 rating in
the Short Term for IDCOL.
Operating Expenses 2009Operating Income 2009
IDCOL handovers Dividend cheque to Honourable Finance Advisor11th Annual General Meeting of IDCOL
11
directors' report
An amount of BDT 300 million for a Broadband Wireless Access Network project by Bangla Lion
Communications Limited has been sanctioned.
An amount of BDT 200 million for a Nationwide Telecommunication Transmission Network
(NTTN) Project by Fiber@Home Limited has been sanctioned.
An amount of BDT 64.40 million for a 400-kW Biomass gasification based Power Plant and
Precipitated Silica Production Plant by Sustainable energy and Agro Resources Limited has been
sanctioned.
BDT 1.05 million has been sanctioned for a Solar Irrigation Pump Project of Grameen Shakti.
IDCOL has floated a Request for Proposal (RFP) for selecting prospective investor(s) to set up
solar photovoltaic module manufacturing /assembling facilities in Bangladesh
Finally, I would like to offer my sincere thanks to the members of the Board of Directors for
their guidance and the officers and employees of the Company for their hard work for smooth
operation of the Company during the year 2008-2009. I also offer my thanks and gratitude to
the shareholders for their cooperation in running the Company.
By order of the Board
Chairman
Date : 05 November 2009
12
auditors' report
Auditors' report to the shareholders of Infrastructure Development Company Limited
We have audited the accompanying Balance Sheet of Infrastructure Development Company Limited
as of 30 June 2009 and the related Profit and Loss Statement, Statement of Changes in
Shareholders' Equity, Cash Flow Statement and Notes thereto for the year then ended. The
preparation of these financial statements and notes thereto is the responsibility of the Company's
management. Our responsibility is to express an independent opinion on these financial statements
based on our audit.
We conducted our audit in accordance with Bangladesh Standards on Auditing. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of financial statements. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the financial statements, prepared in accordance with Bangladesh Accounting
Standards (BAS), exhibit a true and fair view of the state of the Company's affairs as at 30 June
2009 and of the results of its operations and cash flows for the year then ended and have been
drawn up in accordance with the requirements of Companies Act, 1994 and other applicable laws
and regulations.
We also report that :
a) we have obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit and made due verification thereof;
b) in our opinion, proper books of account as required by law have been kept by the Company so
far as it appeared from our examination of those books;
c) the Balance Sheet and Profit and Loss Statement dealt with by the report are in agreement with
the books of account; and
d) the expenditure incurred and payments made thereof were for the purposes of the Company's
business for the year.
S. F. AHMED & CO
Chartered Accountants
House 25, Road 13A, Block D
Banani, Dhaka 1213, Bangladesh
Dhaka, 10 November 2009
13
balance sheet
2009Taka
2008Taka
Notes
Share capital 3 500,000,000 400,000,000
Proposed dividend 60,000,000 40,000,000
Retained earnings 161,001,060 108,097,071
721,001,060 548,097,071
Grant from the Donors 4 7,859,020 5,475,427
Interest suspense account 12,205,020 -
Long term liabilities:
Loan from Government of Bangladesh 5 4,239,638,741 1,411,046,393
Deferred liability - gratuity 6 262,282 266,682
4,239,901,023 1,416,788,502
4,980,966,123 1,964,885,573
Application of funds
Fixed assets:
At cost less depreciation 7 22,384,933 16,838,688
Deferred expenses:
Capitalization of investment advisory service expenses 8 18,996,894 22,797,185
Loans and advances (non-current portion) 9 3,018,918,920 983,124,004
Current assets:
Loans and advances (current portion) 9 394,745,188 238,152,696
Advance, deposits and prepayments 10 148,751,578 89,770,596
Other receivables 11 112,578,842 31,574,049
Short term investment 12 970,000,000 459,500,000
Cash and bank balances 13 482,917,185 246,826,585
2,108,992,793 1,065,823,926
Less: Current liabilities:
Accruals and creditors 14 7,681,912 1,573,207
Provision for corporate income tax 15 180,645,505 122,125,023
188,327,417 123,698,230
Net current assets 1,920,665,376 942,125,696
4,980,966,123 1,964,885,573
See annexed notes
as at 30 June 2009Source of funds
Shareholder's equity
14
S. F. AHMED & COChartered Accountants
Chairman Director Director Executive Director and CEO Company Secretary
Dhaka, 10 November 2009
for Infrastructure Development Company Limited
profit and loss accountfor the year ended 30 June 2009
2009Taka
2008Taka
Notes
Interest on loans and advances 16 217,684,916 119,358,732
Income from project finance 17 29,039,382 20,431,954
Income from renewable energy projects 18 88,215,761 102,552,599
Income from short term investment 19 105,744,069 36,975,695
Other income 20 4,828,076 6,675,875
445,512,204 285,994,855
Less : Expenses
General and administrative expenses 21 10,385,385 9,920,973
IDCOL contribution under REP 22 3,408,317 2,603,909
Financing expenses 23 6,071,290 -
Depreciation 7 4,112,571 2,736,438
Amortisation of IA service expenses 8 3,800,291 4,560,531
27,777,854 19,821,851
Profit before provision 417,734,350 266,173,004
Provision for loans and advances 9.1 26,612,190 178,139
Profit before tax 391,122,160 265,994,865
Less: Provision for income tax 178,218,171 125,933,579
Profit after tax 212,903,989 140,061,286
Retained earnings, brought forward 108,097,071 48,035,785
Profit available for appropriation 321,001,060 188,097,071
Less: Appropriation
Proposed cash dividend 60,000,0000 40,000,000
Bonus share issued 100,000,000 40,000,000
Retained earnings, carried forward to balance sheet 161,001,060 108,097,071
See annexed Notes
Income
15
S. F. AHMED & COChartered Accountants
Chairman Director Director Executive Director and CEO Company Secretary
Dhaka, 10 November 2009
for Infrastructure Development Company Limited
shareholders' equity
Balance at 30 June 2007 360,000,000 30,000,000 48,035,785 438,035,785
Increse of Bonus shares during the year 40,000,000 - (40,000,000) -
Profit after tax for the year 2007-2008 - - 140,061,286 140,061,286
Dividend paid in cash - (30,000,000) - (30,000,000)
Proposed cash dividend - - 40,000,000 (40,000,000) -
Balance at 30 June 2008 400,000,000 40,000,000 108,097,071 548,097,071
Increse of Bonus shares during the year 100,000,000 - (100,000,000) -
Profit after tax for the year 2008-2009 - - 212,903,989 212,903,989
Dividend paid in cash - (40,000,000) - (40,000,000)
Proposed cash dividend - - 60,000,000 (60,000,000) -
Balance at 30 June 2009 500,000,000 60,000,000 161,001,060 721,001,060
Particulars
Amounts in Taka
Sharecapital
Proposeddividend
Retainedearnings Total
for the year ended 30 June 2009
16
S. F. AHMED & COChartered Accountants
Chairman Director Director Executive Director and CEO Company Secretary
Dhaka, 10 November 2009
for Infrastructure Development Company Limited
2009Taka
2008Taka
Profit before tax and provision 417,734,350 266,173,004
Adjustment for non-cash items:
Grant income (1,899,935) (1,470,136)
Depreciation 4,112,571 2,736,438
Gratuity (net off payment) (4,400) 209,696
Amortization of IA service expenses 3,800,291 4,560,531
6,008,527 6,036,529
Income tax paid for previous years (119,697,689) (84,376,147)
Change in working capital 304,045,188 187,833,386
(Increase)/decrease in loans and advances (current portion) (156,592,492) (80,870,822)
(Increase)/decrease in advances, deposits and prepayments (58,980,982) (28,748,082)
(Increase)/decrease in receivables (81,004,793) (3,697,286)
(Increase)/decrease in short term investment (510,500,000) (219,500,000)
Increase/(decrease) in accruals and creditors 18,313,726 (4,244,570)
(788,764,541) (337,060,760)
Net cash used in operating activities (484,719,353) (149,227,374)
B. Cash flow from investing activities
Acquisition of fixed assets (5,375,289) (177,956)
Dividend paid (40,000,000) (30,000,000)
Net cash used in investing activities (45,375,289) (30,177,956)
C. Cash flow from financing activities
Loan from Government of Bangladesh 2,828,592,348 510,337,403
Loans and advances (2,062,407,106) (172,300,023)
Net cash provided by financing activities 766,185,242 338,037,380
Net increase in cash (A+B+C) 236,090,600 158,632,050
Opening cash and bank balances 246,826,585 88,194,535
Closing cash and bank balances 482,917,185 246,826,585
A. Cash flow from operating activities
for the year ended 30 June 2009
cash flow statement
17
S. F. AHMED & COChartered Accountants
Chairman Director Director Executive Director and CEO Company Secretary
Dhaka, 10 November 2009
for Infrastructure Development Company Limited
notes
1. Background
The Infrastructure Development Company Limited (IDCOL), a non-bank financial institution, was
incorporated in Bangladesh on 14 May 1997 as a government owned public limited company under
the Companies Act 1994 with assistance from the World Bank under Private Sector Infrastructure
Development Project (PSIDP). The primary objective of the company is to promote significant
participation of the private sector in investment and operation, ownership and maintenance of new
infrastructure facilities. IDCOL has access to resources provided by the World Bank, Asian
Development Bank, GTZ, KfW, SNV-Netherlands Development Organisation, Islamic Development
Bank and the Government of Bangladesh to place in projects across a range of infrastructure
sectors and has been mandated to provide long-term senior and subordinated debt financing to
viable infrastructure projects in the private sector for power generation, gas and gas related
infrastructure, toll roads and bridges, water supply, urban environmental services, ports,
telecommunications, renewable energy and other similar projects for the development of
infrastructure of the country.
It also channels grants and provides soft loans for the development of rural infrastructure i.e.
renewable energy. Under PSIDP, IDCOL advanced US$80 million as loan to 450 MW Meghnaghat
Power Ltd. Project, reflows receipt from which was used to finance a telecom and a sattelite earth
station project. Since 2002, IDCOL is implementing part of the Rural Electrification and Renewable
Energy Development Project (REREDP). The project is being jointly funded by International
Development Association (IDA) and Global Environment Facility (GEF), GTZ, KfW, Asian Development
Bank (ADB), and Islami Development Bank (IDB). Under the project, IDCOL has a target to finance
1,000,000 Solar Home Systems (SHS) and few wind, micro-hydro and biomass projects through its
participating organisations (POs) working in rural areas.
In the year 2006, IDCOL undertook another project called National Domestic Biogas and Manure
Programme (NDBMP) with assistance from SNV-Netherlands and KfW, Germany. Under this project,
IDCOL through its PO's intends to finance about 37,269 domestic size biogas plants in the remote
rural areas of the country by the year 2012. In addition, IDCOL, from the reflows of its earlier loans
and government contribution, has financed sevaral projects including power plants, telecom
projects, IT projects, land ports and CNG refuelling station.
The Board of Directors of IDCOL comprises senior government officials and prominent business
personalities from the private sector and a full time Executive Director and CEO.
2. Significant accounting policies
2.1 Basis of accounting
The financial statements of the Company under reporting have been prepared under historical cost
convention in accordance with generally accepted accounting principles as laid down in the
International Accounting Standards (IASs) applicable to the company so far as adopted by the
Institute of Chartered Accountants of Bangladesh as Bangladesh Accounting Standards (BASs).
Notes to the financial statements for the year ended 30 June 2009
18
notes
The reported financial statements, i.e. Balance Sheet, Profit and Loss Statement, Cash Flow
Statement and Statement of Changes in Shareholder's Equity were prepared by capturing the
transactions of Infrastructure Development Company Limited. The financial statements of projects
accounts are being maintained and prepared seperately showing movement of funds, i.e. loans and
grants received from various donors, lenders, etc., realisation of principal and interest from
borrowers, loan and grants disbursed to borrowers, repayment of loans to donors, lenders, etc.
These projects accounts are being audited and reported seperately. The consolidated movement of
funds of these projects are shown in note 24.
2.2 Fixed assets and depreciation
Fixed assets are stated at cost less depreciation. Depreciation on additions or disposal of fixed
assets is charged in full for the year, irrespective of the date of acquisition, on reducing balance
method. The rates of depreciation are as follows:
2.3 Accounting for grant
Accounting for grant has been made in accordance with Bangladesh Accounting Standards (BAS) -
20 "Accounting for Government Grants and Disclosure of Government Assistance".
Grant has been recognized as income to the extent of depreciation on grant funded assets.
2.4 Exchange fluctuations and gains or losses thereon
Monetary assets and liabilities at the balance sheet date have been retranslated into Bangladesh
Taka at the rate prevailing on that date. Gain/losses arising on fluctuations of exchange rate is
credited/charged to profit and loss account.
2.5 Investment advisory service expenses
According to the investment advisory (IA) service agreement entered into between IDCOL and
PricewaterhouseCoopers Securities LLC (PwC) on 1 March 1999, it was agreed that PwC will provide
certain advisory services to IDCOL and that expenses borne by PwC will be recovered by raising
invoices at regular intervals. IA service expenses are meant to generate future economic benefits to
the company and therefore, had been capitalized. These expenses are being amortized at a rate of
16.67% per year.
Category of assets Rate of depeciation
Office space 10%
Furniture, fixture and decoration 10%
Computer and other office equipment 25%
Vehicle 20%
19
notes
2009Taka
2008Taka
On adoption of International Accounting Standard (IAS) 38: Intangible Assets as Bangladesh
Accounting Standard (BAS) by The Institute of Chartered Accountants of Bangladesh (ICAB), the
company has written off in the year ended 30 June 2006 all amounts not qualifying for
capitalisation.
3. Share capital
Authorised:
10,000,000 ordinary shares of Tk 100 each 1,000,000,000 1,000,000,000
Issued, subscribed and paid-up:
5,000,000 (2008: 4,000,000) ordinary shares of Tk 100 each 500,000,000 400,000,000
Shareholding position:
Name of the nominee-shareholders
1. Economic Relations Division (ERD),
Ministry of Finance, Government of the
People's Republic of Bangladesh (GoB)
No. ofshares
ValueTaka
No. ofshares
ValueTaka
4,999,000 499,900,000 3,999,000 399,900,000
Representative of GoB:
2. Mr. M Musharraf Hossain Bhuiyan 450 45,000 - -
3. Mr. Md. Aminul Islam Bhuiyan - - 450 45,000
4. Dr. Mohammad Tareque 50 5,000 50 5,000
5. Mr. Md. Feroz Ahmed 50 5,000 50 5,000
6. Mr. Kazi M. Aminul Islam 50 5,000 50 5,000
7. Mr. Md. Moslehuddin 50 5,000 50 5,000
8. Maj. General Amjad Khan Chowdhury (Retd.) 50 5,000 50 5,000
9. Dr. Mohammad Mahbubur Rahman 50 5,000 50 5,000
10. Mr. Md. Abdul Karim 50 5,000 50 5,000
11. Mr. Latifur Rahman 50 5,000 50 5,000
12. Dr. M. Fouzul Kabir Khan 50 5,000 50 5,000
13. Mr. Rashed Maksud Khan 50 5,000 50 5,000
14. Mr. M. Ehsanul Haque - - 50 5,000
15. Mr. Islam Sharif 50 5,000 - -
5,000,000 500,000,000 4,000,000 400,000,000
20
2009Taka
2008Taka
This represents a grant of capital assets namely computer, equipment, furniture, fixtures and vehicle,
received from the World Bank and SNV-Netherlands Development Organisation under PSIDP, REREDP and
NDBMP during the year which are not returnable and for which IDCOL owes no liability to them. The
amount has been arrived at as under:
Opening balance 11,793,631 9,788,940
Add: Addition during the year 4,283,528 2,004,691
16,077,159 11,793,631
Less: Adjustment for depreciation
Opening balance of depreciation 6,318,204 4,848,068
Depreciation charge during the year 1,899,935 1,470,136
8,218,139 6,318,204
Closing balance 7,859,020 5,475,427
5. Loan from Government of Bangladesh
Opening balance
Technical assistance 156,917,583 156,917,583
On lending 1,254,128,810 743,791,406
1,411,046,393 900,708,989
Add: borrowing during the period
Technical assistance - -
On lending 2,828,592,348 510,337,404
2,828,592,348 510,337,404
Closing balance 4,239,638,741 1,411,046,393
According to various loan agreements, IDCOL borrows fund from the GoB at different terms and
conditions for on lending to infrastructure and renewable energy projects. Sources of these funds are: (i)
IDA credit under Private Section Instrastructure Development Project (PSIDP), (ii) IDA credit under Rural
Electrification and Renewable Energy Development Project (REREDP), (ii) ADB loan under Public Private
Infrastructure Development Facility (PPIDF).
6. Deferred liability - gratuity
Opening balance 266,682 56,986
Add: Provision during the year 371,300 209,696
637,982 266,682
Less: Paid during the year 375,700 -
Closing balance 262,282 266,682
As per section 4.7 of IDCOL administrative manual, staff members are entitled to receive a gratuity equal to
their last basic salary drawn for each year of completed service and is payable at the end of service contract.
4. Grant from the donors
2009Taka
2008Taka
21
notes
Offic
e spa
ce
Furni
ture,
fixtur
es an
d dec
oratio
n
Interi
or de
corat
ion at
UTC b
uildin
g
Offic
e furn
ishing
for C
EO/E
D
Comp
uter a
nf oth
er off
ice eq
uipme
nt
Vehic
les
Total
at 30
June
2009
Total
at 30
June
2008
19,41
2,311
2,421
,594
1,368
,029
200,0
00
6,515
,169
2,906
,976
32,82
4,079
30,77
2,988
19,41
2,311
4,424
,424
1,368
,029
200,0
0
8,621
,967
8,436
,165
42,46
2,896
32,82
4,079
10 10 10 10 25 20
9,091
,290
1,367
,659
560,2
21
20,00
0
3,589
,368
1,356
,854
15,98
5,392
13,38
0,510
10,12
3,392
1,673
,335
641,0
02
20,00
0
4,847
,518
2,772
,716
20,07
7,963
15,98
5,392
9,288
,919
2,751
,089
727,0
27
180,0
00
3,774
,449
5,663
,449
22,38
4,933
16,83
8,688
_
2,002
,830
200,0
00
2,106
,798
5,529
,189
9,838,81
7
2,251
,091
200,0
00
200,0
00
200,0
00
20,00
0
20,00
0
131,5
56
1,032
,102
305,6
76
80,78
1
20,00
0
1,258
,150
1,415
,862
4,112,57
1
2,736
,438
Balan
ce at
01 Jul
y200
8
Additi
ondur
ingthe
year
Total a
t30
June
2009
Total a
t30
June
2009
Net bo
okval
ue at
30 Jun
e200
9
Total a
t01
July
2008
Charg
efor
the year
Rate (%)
Adjus
tments
Adjus
ments
Depre
ciation
Cost
notes
Capitalisation of IA service expenses
Opening balance
Less: Amortisation
Closing balance
Amortisation of capitalisation of IA service expenses has been charged as expenses.
Opening balance
Add: disbursement during the year
Less: repayment during the year
Add: interest charged on special mention account
Less: provision against loan (note 9.1)
Less: current maturity
Closing balance
1,233,612,828
2,617,796,643
3,851,409,471
411,002,065
12,205,020
3,452,612,426
38,948,318
3,413,664,108
394,745,188
3,018,918,920
980,441,982
482,000,969
1,462,442,951
225,187,070
3,643,053
1,233,612,828
12,336,128
1,221,276,700
238,152,696
983,124,004
22,797,185
3,800,291
18,996,894
27,357,716
4,560,531
22,797,185
9.1 Provision against loansAs per Bangladesh Bank FID circular nos. 08 dated 3 August 2002, 11 dated 31 October 2005, and 03 dated 3 May 2006, provisions @ 1% and 5% are required to be made on standard loans and special mention account, respectively, based on the length of overdue of respective loans. Details of provision are given as under.
8.
9. Loan and avdances
IDCOL has financed power projects, land port projects, telecom projects, ICT projects, CNG refuelling
station project, biomass and biogas based power projects, as of 30 June 2009, as detailed below:
1% general provision on standard loan
5% specific provision for special mention account
Provision maintained at the end of year
Less: provision made earlier year
Provision made during the year
33,268,013
5,680,305
38,948,318
12,336,128
26,612,190
12,336,128
-
12,336,128
12,157,989
178,139
2009Taka
23
notes 2009Taka
2008TakaAdvances and deposits
Advances to/for:
Corporate income tax
Salary/car loan
NDBMP expenses
Training /travelling expenses
Cash fund for solar home systems project
Directors' remuneration
Book for project finance course
Deposits:
Telephone
Internet/e-mail
Other receivables
Interest on loans and advances
Administration fees under renewable energy projects
Interest on fixed deposits
Interest on REP refinancing
Monitoring and other fees
Training fees
Principal due on loans and advances
Interest on NDBMP refinancing
Others
Short term investment
Fixed Deposit Receipt (three months' term) with:
Bank Al Falah Ltd.
NCC Bank Ltd.
One Bank Ltd.
Mutual Trust Bank Ltd.
Standard Bank Ltd
Dhaka Bank Ltd.
Prime Bank Ltd.
Jamuna Bank Ltd.
EXIM Bank Ltd.
BRAC Bank Ltd.
First Security Islami Bank Ltd.
Fixed Deposit Receipt (six months' term) with:
146,142,800
1,445,295
750,000
229,983
150,000
29,000
_
148,747,078
2,500
2,000
4,500
148,751,578
47,453,815
25,758,114
24,720,417
10,868,851
3,369,745
49,000
_
_
358,900
112,578,842
100,000,000
100,000,000
100,000,000
100,000,000
85,000,000
50,000,000
50,000,000
40,000,000
15,000,000
-
30,000,000
88,154,667
416,666
764,000
276,423
90,000
24,000
40,341
89,766,096
2,500
2,000
4,500
89,770,596
13,303,322
1,186,712
7,913,194
1,597,940
3,373,055
49,000
3,919,638
74,227
156,961
31,574,049
100,000,000
80,000,000
_
_
_
100,000,000
100,000,000
_
_
79,500,000
_
10.
11.
12. Rate ofinterest
13%
13%
13.5%
13.1%
10%&12.5%
9.5%
9.5%
10%
9.25%
13%
13%
13%&13.5%
13.6%
13.5%
10%
10%
24
Shahjalal Islami Bank Ltd. 80,000,000 -
First Security Islami Bank Ltd. 70,000,000 -
The Premier Bank Ltd. 50,000,000 -
IDLC Finance Ltd. 50,000,000 -
Delta Brac Housing Finance Corporation Ltd. 50,000,000 -
970,000,000 459,500,000
notes
2009Taka
2008Taka
25
13. Cash and bank balancesCash in hand:
Petty cash 23,288 10,000
Cash at bank with:
Janata Bank, Local Office, (USD A/c) 3,442,312 212,963,802
Janata Bank, Sher-e-Bangla Nagar Branch (STD A/c) 16,783,323 5,405,759
Janata Bank, Local Office (STD A/c) 8,040,481 -
Janata Bank, Local Office (STD A/c) 345,250,000 -
The City Bank Ltd, Kawran Bazar Branch (STD A/c) 1,740,416 4,697,859
Bangladesh Bank (Current A/c) 107,637,365 23,749,165
482,917,185 246,826,585
14. Accruals and creditors Interest payable to GoB - PPIDF 6,065,080 -
Solar home system project (GEF PDF-B Grant) 494,973 494,973
Payable to participating organisations 308,920 423,327
Income tax on salary/others 254,491 254,491
VAT payable 113,442 6,229
Repair and maintenance 89,320 41,674
Audit fee 68,343 62,700
Due dilligent cost 64,000 142,860
Office maintenance 61,430 30,715
Training expenses 46,350 14,640
Payable to promoters 45,035 45,035
Electricity 30,938 18,300
Office supplies 10,910 10,310
Telephone 10,652 17,760
Books, papers and periodicals 798 800
Others 17,230 9,393
7,681,912 1,573,207
15. Provision for income tax
For the year ended 30 June
2006 1,182,539 1,182,539
2008 1,244,795 120,942,484
2009 178,218,171 -
180,645,505 122,125,023
notes
2009Taka
2008Taka
Interest on loans and advances
GrameenPhone Ltd.
Pacific Bangladesh Telecom Ltd.
Malancha Holdings Ltd.
Barakatullah Electro Dynamics Ltd
Summit Power Ltd.
Ventur Energy Resources Ltd
Summit Purbanchal Power Company Ltd
Summit Uttaranchol Power Company Ltd
Bangla Trac Communications Ltd
RanksTel
Thermax
Shonchalok
Sonamasjid Port Link Ltd.
Shah Cement Power Ltd.
Hilli Port Link Ltd.
Income from project finance
Income from sponsors
Monitoring fees (note 17.1)
Commitment fees
Loan application fees
Agency fees on loans & advances
Arrangers fees
Extended maturity fees on loans & advances
Meghnaghat Power Project (note 17.1.1)
Pacific Bangladesh Telecom Ltd (note 17.1.2)
DNS SatComm Ltd (note 17.1.3)
16.
17.
17.1
17.1.1
17.1.2
17.1.3
62,444,638
35,772,191
29,276,599
19,390,535
18,257,299
15,108,728
14,709,307
11,240,682
4,584,611
3,841,034
3,010,681
48,611
_
_
_
217,684,916
15,660,536
13,133,496
145,350
100,000
_
_
_
29,039,382
12,539,830
593,666
_
13,133,496
12,468,750
58,300,484
3,463,889
_
18,815,735
_
_
_
_
1,336,383
183,622
_
10,720,234
9,317,594
4,752,041
119,358,732
3,494,271
14,304,993
111,928
367,000
1,533,115
460,000
160,647
20,431,954
13,062,002
1,163,752
79,239
14,304,993
Monitoring fees
This represents monitoring fee payable quarterly on disbursed
and outstanding loan amounts of the following projects:
Fee @ 0.25% p.a on the loan amount of USD 80 million under article II, section 2.07 of IDCOL Senior Facility Agreement and IDCOL Subordinate Facility Agreement from 24 October 2001.
Fee @ 1% p.a. on the loan amount of Tk 260 million under section 11.1.2 of agreement
between IDCOL and Pacific Bangladesh Telecom Ltd. (PBTL) from 31 January 2005.
Fee @ 0.25% p.a. on the loan amount of Tk. 4.8 million under Section 6.5 of term loan
facility agreement between IDCOL and DNS SatComm Ltd. from 14 March 2005.
26
Income from renewable energy project REREDP administration fees - GEF (note 18.1)
Fees for administering SHS program - GTZ (note 18.2)
Fees for administering SHS program - KfW (note 18.2)
NDBMP administration fees - (note 18.3
Interest on REREDP refinancing (note 18.4)
Interest on NDBMP refinancing (note) 18.5
Interest on PPIDF refinancing (note 18.6)
Interest on Bridge finance
Interest on RKKL
Other
18.
18.1
18.2
18.3
18.4
18.5
18.6
_
35,532,308
29,754,102
6,527,853
5,938,412
1,955,154
8,354,747
75,579
5,148
72,458
88,215,760
8,489,760
28,071
87,842,536
2,016,263
3,703,793
472,176
_
_
_
_
102,552,599
19. Income from short term investment Interest on fixed deposit receipt
Interest on call money
105,332,972
411,097
105,744,069
36,763,056
212,639
36,975,695
REREDP administration fees - GEFThis represents a fee of up to USD 736,000 or equivalent Taka for administering the REP over the 5-years project period. The fee is released based on actual expenses. Thus, the amount has been taken into account as fees for administering Rural Electrification and Renewable Energy Development Project (REREDP) up to 30 June 2009.
Fees for administering SHS programme - (GTZ and KfW)
This represents fees for administering the SHS programme financed by both GTZ and KfW.
Thus, the amount has been taken into account as fees for financing SHSs up to 30 June 2009.
NDBMP administration fees
This represents fee for administering the National Domestic Biogas and Manure Programme
(NDBMP) financed by SNV, Netherlands Development Organization. Thus, the amount has
been taken into account as fees for promotion, monitoring and financing biogas plants up
to 30 June 2009.
Interest on REREDP refinancing
As per project agreements, 97% of interest on REREDP refinancing, charged @ 6% per
annum, extended to various Participating Organisations working under the project is
deposited to GoB accounts. IDCOL receives 3% of said interest for monitoring the
refinancing activities.
Interest on NDBMP refinancing
As per project agreement, IDCOL receives 6% interest per annum, funded by KfW and IDCOL.
Thus, the amount has been taken into account as interest for refinancing.
Interest on PPIDF refinancing
As per project agreements, IDCOL receives 6% interest per annum, funded by ADB and
IDCOL. Thus, the amount has been taken into account as interest for refinancing.
2009Taka
2008Taka
27
notes
Other income Grant income
Exchange gain
Bank interest
Interest on employee car loan
Others
General and administration expenses Salary and allowances
Advertisement
Directors' remuneration
Repair and maintenance
Meeting expenses
Gratuity
Maintenance and utility of UTC building
Telephone, fax and e-mail
Seminar, workshop and roadshwos
Loss on sale of fixed asset
Insurance premium
Electricity
Office expenses
Printing and stationers
Bank charge
Travelling and conveyance
Entertainment
Books and periodicals
Audit fees
Professional and legal fees
Office supplies and maintenance
Postage and courier
Exchange loss
IDCOL contribution under REP
Financing expenses Borrowing cost under PPIDF
Financial closing expenses
20.
21.
22.
23.
1,899,935
1,439,023
388,642
44,592
1,055,884
4,828,076
5,102,229
823,522
713,000
624,526
488,614
371,300
319,980
307,991
219,717
180,000
168,288
159,754
158,927
152,360
139,754
127,262
89,065
72,405
68,343
60,750
37,137
461
_
10,385,385
3,408,317
1,470,136
_
3,303,535
_
1,902,204
6,675,875
6,200,186
165,688
471,500
499,349
219,718
209,696
297,966
352,130
75,852
68,444
43,233
163,757
92,190
229,548
76,387
48,584
67,857
58,562
62,700
_
89,352
15,454
412,820
9,920,973
2,603,909
This represents part of cost (15% for goods procured locally and 20% for consultants' services and training) of seminars, workshops and other promotional activities for renewable energy programme (REP) incurred by IDCOL for the implementation, promotion, monitoring and evalution of the REP as an implementing agency.
6,065,080
6,210
6,071,290
_
_
2009Taka
2008Taka
notes
2009Taka
Notes 2008TakaFund inflow
Long term loans: Loan from IDA under PSIDP aa 24.1 Loan from IDA under REREDP 24.2 Loan from KfW under solar programme 24.2 Grants received for project implementation: Grant from World Bank (GEF) under REREDP 24.3 Grant from KfW under solar programme 24.3 Grant from GTZ under solar programme 24.3
Principal repayment and interest received from projects: Principal repaid by the projects financed under PSIDP Annex - A Principal repaid by the projects financed under REREDP Annex - A Interest paid by the projects financed under PSIDP Annex - A Interest paid by the projects financed under REREDP Annex - A
Interest from bank accounts Fund outflow Loans and advances: Projects finnanced under PSIDP Annex - ALoan to POs under REREDP Annex - ALoan to POs under KfW funded solar programme Annex - A Grants utilized for project implementation: World Bank (GEF) grants provided to POs under REREDP World Bank (GEF) grants used for project implementation under REREDPKfW grants provided to POs under solar programme KfW grants used for project implementation under solar programmeGTZ grants provided to POs under solar programme GTZ grants used for project implementation under solar programme On lending by IDCOL from reflows: Projects finnanced from reflows under PSIDP Projects finnanced from reflows under REREDP
Debt service of IDA loans Refund, tax and charges Balance at bank
5,472,000,000 2,748,380,269 5,230,801 8,225,611,070
419,346,363 407,411,118 156,217,339 982,974,820
526,293,652 138,815,195 2,954,680,868 205,182,980 3,824,972,694
3,382,907 13,036,941,491
5,472,000,000 2,708,865,147 5,230,801 8,186,095,948
302,626,769 102,350,264 310,423,593 92,157,146 104,413,884 37,532,703 949,504,360
1,378,219,972 207,858,378
1,586,078,350
360,506,345 1,426,091
1,953,330,397 13,036,941,491
5,472,000,000 3,714,764,503 5,230,801 9,191,995,304
445,876,567 485,584,571 336,347,179 1,267,808,317
966,242,036 287,740,543 3,423,689,286 374,837,777
5,052,509,642 6,037,371
15,518,350,634
5,472,000,000 3,714,404,626 5,230,801 9,191,635,427
321,241,848 121,002,778 355,155,392 101,484,503 257,715,583 68,303,808 1,224,903,912
3,403,860,249 425,258,378
3,829,118,627
661,829,601 1,886,241
608,976,826 15,518,350,634
24. Consolidated movement of funds under off-balance sheet projects
29
notes
24.1 IDCOL has drawn an amount of USD 80,000,000 as sub loan from the World Bank under IDA
Credit No. 2995-BD for financing Meghnaghat 450MW power plant. The loan amount was
disbursed to the project company (AES Meghnaghat Ltd.) directly from the World Bank.
24.2 The World Bank (IDA) and KfW have provided the amount as loan under the project
agreements signed among the GoB, donors and IDCOL. This loan is being used for providing
refinance to Participating Organizations (POs) under IDCOL solar programme.
24.3 The donors provide two grants, for purchase of SHS: the buy-down grant to lower initial
investment cost of SHS (Grant A), and the institutional development grant for institutional
development of POs (Grant B). Both the components of grants decline as market expands and
becomes commercially viable. In addition to grants for POs, donors also provides grants for
project implementation cost which includes; monitoring, supervision, marketing, physical
verification of SHS, technical audit, capacity building of POs, consultants' fees, etc.
25. General 25.1 Figures in these notes and the accompanying financial statements have been rounded off to
the nearest Taka.
25.2 Figures relating to the previous year included in this report have been rearranged, wherever
considered necessary, to make them comparable with those of the current year without,
however, creating any impact on the operating result and value of assets and
25.3 In consolidated movement of funds amounts are cumulative and foreign currencies (USD and
EURO) are converted into equivalent Bangladesh Taka applying exchange rate of BDT
68.40/USD prevailing at 30 June 2009.
30
S. F. AHMED & COChartered Accountants
Chairman Director Director Executive Director and CEO Company Secretary
Dhaka, 10 November 2009
for Infrastructure Development Company Limited
Infr
ast
ruct
ure
Develo
pm
en
t C
om
pan
y L
imit
ed
No
tes
to t
he f
inan
cial
state
men
ts f
or
the y
ear
en
ded
30
Ju
ne 2
00
9A
nnex
- A
Page
- 1/2
US
D
B
DT
US
D
BD
TU
SD
B
DT
US
D
BD
TU
SD
B
DT
US
D
BD
TU
SD
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DT
US
D
BD
TU
SD
B
DT
US
D
B
DT
US
D
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DT
Par
ticul
ars
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dis
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Princ
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and
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erIn
tere
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On
-bala
nce
sh
eet
loan
sID
CO
L L
oan
s
31
32
Ann
ex -
AP
age-
2/2
1.
Ove
rdue
is t
he
amount
whic
h is
not
rece
ived
on r
espec
tive
pay
men
t dat
e under
a loan
agre
emen
t, 2
. In
tere
sts
whic
h a
re c
alcu
late
d o
n p
arti
cula
r dat
e on a
ccru
al b
asis
but
not
rece
ived
, 3
. In
tere
sts
whic
h a
re t
o b
e pai
d o
n p
aym
ent
dat
e as
per
agre
emen
t.
4.
Inte
rest
s re
ceiv
able
is
the
amount
accr
ued
on p
arti
cula
r dat
e, w
hic
h a
re t
o b
e re
ceiv
ed o
n p
aym
ent
dat
es u
nder
loan
agre
emen
ts,
5.
97
% o
f th
e in
tere
st a
nd c
orr
espondin
g L
iquid
ated
Dam
ages
(LD
s) u
nder
RER
EDP
is d
eposi
ted into
GoB
acco
unt,
while
the
rest
3%
is
IDC
OL
fees
.
20
,00
0,0
00
60
,00
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80
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4
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01
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2,36
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2
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210,
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24
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3
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000,
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6
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1
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1,55
2
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2
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1
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8,34
7
7,67
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9
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3
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1
564,
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78,2
11
20,5
82,3
49
462,
382,
949
- -
74,
201,
201
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56,7
88
88,5
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8
239
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43,6
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10
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6
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financier with a vision
33
ABOUT IDCOL
Infrastructure Development Company Limited (IDCOL) was established on 14 May 1997 by the
Government of Bangladesh (GoB). The Company was licensed by Bangladesh Bank as a non-bank
financial institution (NBFI) on 5 January 1998. Since its inception, IDCOL is playing a major role in
bridging the financing gap for developing medium and large-scale infrastructure and renewable
energy projects in Bangladesh. The company now stands as the market leader in private sector
energy and infrastructure financing in Bangladesh.
MANAGEMENT
IDCOL is managed by an eight-member independent Board of Directors comprising four senior
government officials, three prominent entrepreneurs from the private sector and a full time
Executive Director and Chief Executive Officer. It has a small and multi-skilled work force
comprising economists, financial and market analysts, engineers, lawyers, IT experts and
accountants. IDCOL's stakeholders include the government, private sector, NGOs, multilateral
institutions, academics and the people of Bangladesh at large.
MISSION AND VALUES
IDCOL's mission is to promote economic development in Bangladesh by encouraging private sector
investment in energy and infrastructure projects. IDCOL's values include:
Global standard and competence: IDCOL is committed to deliver financial services to the clients
maintaining global standards and competence;
Transparency and integrity: IDCOL believes in maintaining transparency, good governance and
integrity in all activities performed by the Company; and
Social responsibility: IDCOL is dedicated to perform as a development financial institution that
articulates social responsibility.
RESOURCES
BDT 500 million as equity.
IDCOL is a multi-donor funded financing institution and currently manages:Reflows from USD 80 million loan extended to 450 MW Meghnaghat Power Ltd. project;
USD 61 million received from International Development Association (IDA) and Global Environment
Facility (GEF) to provide grants and refinancing for the promotion of renewable energy under the Rural
Electrification and Renewable Energy Development Project (REREDP);
EUR 23.27 million from KFW and GTZ for extension of IDCOL's Solar Energy Programme;
EUR 14.9 million from SNV, KfW and other donors for implementing a nationwide domestic biogas and manure programme;
financier with a vision
34
USD 165 million from Asian Development Bank (ADB) for financing infrastructure and renewableenergy projects;
USD 100 million from the World Bank for IDCOL's Solar Home System (SHS) programme andrenewable energy programme.
PRODUCTS AND SERVICES Financing and arranging finance for large and medium sized infrastructure projects implemented by the
private sector;
Working as Facility Agent and Security Trustee under projects;
Refinancing of micro-credit provided by NGOs / MFIs and other private entities for promotion of renewable energy;
Channelling grants and technical assistance for the promotion of rural infrastructure;
Providing financial advisory services to both financial institutions and project sponsors;
Organizing training courses on project finance and financial modelling; and
Providing ''SHONCHALOK'' facility - a concessionary loan for the ICT sector.
LENDING TERMS
IDCOL's rates are generally market based. IDCOL matches lending term of other commercial lenders; and
IDCOL also offers concessionary loans for rural infrastructure projects.
Large and Medium-Sized Infrastructure Projects
Under its mainstream programme, IDCOL provides long-term senior and subordinated debt financing to
viable privately-owned and operated infrastructure projects. To be eligible for IDCOL funding, projects must
meet the GOB's priority plan and use proven technology. Infrastructure sectors in the current priority list
include:
Power Generation Telecommunications Information and Communication Technology (ICT)
Ports Renewable energy Gas and Gas related Infrastructure Water Supply
Toll Roads and Bridges Urban Environmental Services Shipyards and shipbuilding Mass transportation systems
Other projects as may be approved by IDCOL Board.
Renewable Energy Programme
Under Renewable Energy Programme, IDCOL's current focus is on two major areas:
(a) Solar Home Systems (SHS)
(b) Domestic Biogas Plants
In addition to the above, IDCOL has financed a 250 kW biomass gasification-based power plant and a 50 kW
biogas based power plant on a pilot basis. Besides, IDCOL has approved financing of a 400 kW biomass
gasification-based power plant along with a precipitated silica production plant, and a 11.2 kW solar
photovoltaic based submersible water pump.
financier with a vision
A. IDCOL Solar Energy Programme
IDCOL currently promotes SHSs in the remote rural areas of Bangladesh through its 15 partner
organizations (POs), namely:
i. Bangladesh Rural Integrated Development For Grub-Street Economy;
ii. BRAC Foundation;
iii. Centre For Mass Education in Science;
iv. COAST Trust;
v. Grameen Shakti;
vi. Hilful Fuzul Samaj Kalyan Sangstha;
vii. Integrated Development Foundation;
viii. Upokulio Bidyuatayon O Mohila Unnayan Shamity;
ix. Padakhep Manbik Unnayan Kendra;
x. Palli Daridra Bimochan Foundation;
xi. Rural Services Foundation;
xii. Shubashati;
xiii. Srizony Bangladesh;
xiv. Thengamara Mahila Shabuj Shangha;
xv. Mukti Cox'sbazar;
For fulfilling the target of 1 million SHS installation by 2012, 8 more POs have been enlisted into the programme.
SHSs are sold (mostly through micro-credit) by POs to the households and business entities in the remote rural areas of Bangladesh. IDCOL provides refinancing facility to the POs and channels grants to reduce the SHSs costs as well as support the institutional development of the POs. In addition, IDCOL also provides technical, logistics, promotional and training assistance to the POs.
IDCOL's initial target was to finance 50,000 SHSs with financial assistance from the World Bank and GEF by the end of June 2008. The target was achieved in September 2005, 3 years ahead of schedule and USD 2.0 million below estimated project cost. IDCOL now has a revised target of financing 1,000,000 SHSs by 2012 with additional assistance from the World Bank, KfW, GTZ, ADB, IDB and the Government of Bangladesh (GoB). Up to October 2009, a total of 403,000, SHSs have been installed under the programme. IDCOL's Solar Energy Programme is one of the fastest growing renewable energy programs in the world. It has brought a significant change in lives in the remote rural areas of Bangladesh providing access to electricity.
A Solar Home System Financed by IDCOL
35
financier with a vision
A biogas plant financed by IDCOL
National Domestic Biogas and Manure Program
With support from SNV, Netherlands Development Organization and KfW, Germany, IDCOL has
undertaken another vital project to implement National Domestic Biogas and Manure program
(NDBMP). Under this program, 37,269 domestic size biogas plants will be installed in Bangladesh
by 2012. Gas produced from these plants is being used for cooking purposes in rural households
and this is expected to have a positive impact on the environment by preventing deforestation and
improving soil fertility. In addition, the slurry, by-product of biogas plants, being a very good
organic fertilizer can also be used to improve soil fertility.
IDCOL is implementing the program through its 24 (twenty-four) construction partner organisations (CPOs), lending and construction organisations (LCPOs), and manufacturing partner
organisations (MPOs). Name of those organisation working under NDBMP are:
To attain the desired programme target, four CPOs and eight LCPOs have recently been enlisted
under the program.
A national steering committee and an expert level technical committee provide guidelines for the
project implementation. The latter has developed an improved model of biogas plant. Up to
October 2009, a total of 9,550 (nine thousand five hundred and fifty) plants have been completed
in several districts of the country.
IDCOL provides Tk. 9,000 as investment subsidy to each household for installing biogas plants as
per the specifications and standards set forth by IDCOL / SNV. Total project cost is estimated as
EUR 23.61 million and will be borne by individual households, SNV, KfW and GoB.
Agriculture Minister Begum Matia Chowdhuryinaugurates Biogas Village in Haluaghat, Mymensingh
CPOs
Change Maker Nirapod Enginering DOPS BONDHON Jahanara Biogas
MPOs
Advance Enginering NOREEYA Biogas
LCPOs
Grameen Shakti Srizony SANGRAM RSF DESHA Rahman Biogas SOUL Kamrul Biogas SUF ASKS NDS ARAB RISDA MBSK Subashati Hossain Biogas SDS
36
financier with a vision
37
13th training course on Project Finance
Training Courses
IDCOL organizes training courses on project finance and financial modeling. These courses are
intended to improve the understanding of young bank professionals with regard to the techniques
employed in cash flow lending as well as the principles used to make them successful. The courses
are also designed for officials representing government organizations, project sponsors and
development companies, international organizations and consulting firms.
Project finance training course has about twenty modules, covering various subjects such as origin
and development of modern project finance, bankability aspects of project agreements, loan
agreements, interest rate swap, and issues related to subordinated debt and design of security
package.
Financial modeling course is designed to enable the participants to work with financial models as
well as constructing new models. While every projects will have unique features, and each
spreadsheet its own techniques, certain principles apply generally to the construction of financial
models, and these principles are the main focus of this training.
Till date, IDCOL trained more than six hundred professionals in thirteen training courses on project
finance, seven courses on financial modelling, and a special course for senior officials of Prime
Minister's Office and Ministry of Finance on loan evaluation techniques. IDCOL continued to arrange
training programmes on 'Rural Electrification and Renewable Energy Programme Implementation'
for Ethiopian Government officials. Recently, at the request of GTZ, IDCOL organized a 3-day
training programme on 'Renewable Energy Programme Development' for a 6-member team of
various agencies of Ethiopian Government.
IDCOL has been organizing similar programmes for government officials of Ethiopia for last two
years. A total of 60 officials were trained under such training programmes.
Workshop on Clean Energy Application
financier with a vision
38
Financed/Extended:
USD 80 million to Meghnaghat 450MW Combined Cycle Power Plant, the single largest loan
provided by a Bangladeshi Financial Institution to the private sector.
BDT 600 million to Summit Uttaranchal Power Company Limited and Summit Pubanchal Power
Company Limited for setting up four small power plants with a total capacity of 110 MW.
BDT 500 million to Barakatullah Electro Dynamics Limited for setting up a 51 MW rental power
plant at Fenchuganj, Sylhet.
BDT 200 million to Malancha Holdings Limited for installation of a 34.5 MW power plant at
Dhaka Export Processing Zone.
BDT 200 million to Venture Energy Resources Limited for establishing a 34.5 MW rental power
plant at Bhola.
BDT 153.3 million to 33.75 MW expansion plant of Summit Power Limited.
BDT 120 million to Shah Cement Power Limited, an 11.6 MW power plant.
FINANCIAL PERFORMANCE
MILESTONES ACHIEVED BY IDCOL
financier with a vision
51 MW rental power plant of BarakatullahElectro Dynamics Ltd.
BDT 80 million for two land port projects, namely Panama Hilli Port Link Limited and Panama Sonamasjid Port Link LimitedBDT 360 million and USD 10 million to Pacific Bangladesh Telecom Limited cellular network expansion project.USD 3 million to Bangla Trac Communications Limited for setting up an international gateway services network.BDT 50 million to Ranks Telecom Limited PSTN project BDT 250 million to Grameen Phone Limited cellular network expansion projectBDT 50 million to DNS SatComm Satellite Earth Station. BDT 9.2 million to the IT enable services industry through a credit line to Premier Bank Ltd. under the Shonchalok programBDT 26.5 million as loan and grant to Dreams' Power (Pvt.) Limited for installation of a 250-kW biomass gasification based power plant and expansion of distribution network.BDT 2.4 million as loan and grant to Rashid Krishi Khamar Limited for setting up a 50-kW biogas based power plant. BDT 31 million to Thermex Trade Limited for settingup a CNG refuelling station.
Invested :
BDT 500 million in unsecured, senior bond ofGrameen Phone Limited.
Approved:
BDT 350 million to Banglalion Communications Limited for setting up a wireless
broadband network to provide nationwide broadband wireless access.
BDT 200 million to Fiber@Home Limited for setting up a nationwide telecommunication
transmission network.
BDT 150 million to BM Container Depot Limited for setting up an inland container
depot and container freight station at Sitalpur, Sitakunda, Chittagong.
BDT 200 million to M & H Telecom Limited for setting up an interconnection exchange
at Dhaka, Chittagong, and Khulna.
BDT 64 million to Sustainable Energy and Agro-resource Limited for setting up a 400-kW
rice husk gasification based power plant and a precipitated silica prduction plant.
BDT 3.18 million loan and grant to Grameen Shakti for setting up a 11.2 kW solar
photovoltaic based submersible water pump at Shapahar, Naogaon.
BDT 500 million refinancing facility to commercial banks and FIs to support IT enabled
services industry in Bangladesh.
Disbursed:BDT 5,840 million refinancing and grants to its POs for the promotion of 353,097 Solar Home Systems (approximately) in the remote rural areas of Bangladesh till September 2009.BDT 130 million refinancing and grants to its POs for the promotion of 8,510 Biogas Plants (approximately) in the remote rural areas of Bangladesh till October 2009.
39
DNS SatComm satellite earth station
Arranged:
Syndicated Equity and Term Loan Facility of BDT 128.3 million for DNS SatComm Satellite Earth
Station Project, the single largest ICT infrastructure project of the country in the private sector.
Syndicated Term Loan Facility of BDT 1,250 million for 51 rental power project of Barakatullah
Electro Dynamics Limited.
Syndicated Term Loan Facility of BDT 390 million for 11.6 MW power project of Shah Cement Power Ltd.
Syndicated Term Loan Facility of BDT 265 million for Panama Hilli and Panama Sonamasjid land
port projects.
Co-arranged USD 30 million for Pacific Bangladesh Telecom Limited expansion project.
Co-arranged BDT 2,500 million term loan facility for 34.5 MW power project of Malancha
Holdings Ltd.
Co-arranged BDT 920 million term loan facility for 34.5 MW power project of Venture Energy
Resources Ltd.
Co-arranged BDT 3,955 million term loan facility for four small power plants of SUPCL and SPPCL.
Co-arranged BDT 528 million term loan facility for interconnection exchange network project of
M & H Telecom Ltd.
IDCOL is a unique financial institution because it:
a. arranges both debt and equity for infrastructure projects;
b. is able to offer both senior and subordinated loans;
c. is able to tailor interest rates, loan tenor, and grace period
as required by the project;
d. provides financing in both local and foreign currency;
e. advises borrower(s) regarding the structure of financing; and
f. provides credit, grants and technical assistance for
promotion of renewable energy in rural areas.
financier with a vision
40
450 MW Meghnaghat power plant
SPECIALTIES
250 kW biomass gasificationbased power plant
financier with a vision
Prospects of Renewable Energy in Bangladesh
Infrastructure Development Company Limited (IDCOL) was established as a joint initiative of the
Government of Bangladesh (GoB) and the World Bank. On 14 May 1997, it was registered as a
public limited company under The Companies Act 1994. IDCOL was licensed by Bangladesh Bank
as a Non-Bank Financial Institution (NBFI) on 5 January 1998. Since its inception, IDCOL has been
playing a major role in bridging the financing gap in developing medium and large-scale
infrastructure as well as renewable energy projects in Bangladesh. Through its participation, IDCOL
serves as a catalyst in mobilizing private debt and equity financing in infrastructure projects. In
renewable energy projects, however, IDCOL provides subsidy, soft loan and technical support to
the private sector with the objective of energizing rural Bangladesh in a sustainable manner.
Renewable energy is a relatively new concept in Bangladesh. In 2002, IDCOL, with support from the
World Bank and Global Environmental Facility (GEF), started implementing the first comprehensive
solar home systems (SHS) program in the off-grid areas of Bangladesh . In 2006, with support from
SNV, Netherlands Development Organisation and German Financial Cooperation (KfW), IDCOL
undertook a nationwide program on domestic biogas. IDCOL also promotes new and emerging
renewable energy technologies. So far, it has financed several pilot projects i.e. biomass
gasification based power plant, electricity from biogas, solar irrigation pumps etc. Today, IDCOL
has emerged as the largest promoter and financier of the renewable energy sector in Bangladesh.
IDCOL Solar Home System (SHS) Program
SHS is a convenient mode of supplying power for small electrical loads such as lights,
radio/cassette players, mobile chargers and black and white TV. Started in 2002, IDCOL SHS
Program had an initial target to finance installation of 50,000 SHSs by July 2008. The target was
achieved in September 2005, almost three years ahead of schedule. IDCOL now has a revised target
to finance 1,000,000 SHSs by 2012 with additional financial support from the World Bank, GTZ,
KfW, ADB and IDB. Till October 2009, IDCOL financed installation of 403,000 SHSs all over the
country. Currently, about 17,000 SHSs are being installed every month under IDCOL's SHS
programme.
The programme is being implemented through 15 Partner Organizations (POs) including, Grameen
Shakti, BRAC Foundation, Rural Services Foundation (RSF) etc. The role of the POs working under
the program is to identify project areas, select potential customers, install the systems, provide
maintenance support and extend loans to the households. IDCOL provides subsidies and
refinancing facility, sets technical specification for solar equipments, creates awareness, provides
training support and monitors PO's performance.
IDCOL provides two types of grants - 'Capital Buy-down Grant' to the households to lower the costs
of SHS and 'Institutional Development Grant' to the POs to build up their institutional capacity. The
amounts of subsidies decrease in phases with a view to achieving commercialization of SHS
programme in Bangladesh.
41
financier with a vision
Households are required to pay minimum 10% of the system cost as down-payment. The remaining
amount can be paid either through direct payment or through credit from the POs. Different POs
extend credit on different terms and conditions. The loan tenor varies from 1 to 5 years, and
interest rate varies from 8% to 12% per annum. IDCOL offers a refinancing facility with 6-10 year
maturity, 1-2 year grace period and 6%-8% annual interest rate to its POs.
Till September 2009, 15,000 new jobs have been created under the program. Moreover, the
programme annually reduces consumption of about 47 million liters of kerosene and lowers
country's foreign currency outage for import payments. In addition, estimated annual GHG
emission reduction by the programme is more than 100,000 tons by 2012.
National Domestic Biogas and Manure Programme
Bangladesh has a great potential for Biogas technology. The cattle population is about 24 million
(2005-06), which yield about 240 million kg of cattle wastes per day. These wastes have the
potential for production of 8.6 million cubic meter (m3) of biogas. If even 50% of the cattle wastes
could be used for biogas production, about 1.44 million biogas plants with capacity of 3 m3 each
could be set up. Such a biogas plant can provide the necessary energy requirements for cooking
and lighting for a family of 8-10 members. Apart from the energy, the slurry produced as a bi-
product from biogas digesters is a very good organic fertilizer.
National Domestic Biogas and Manure Program (NDBMP) is currently the largest biogas program of
the country implemented by IDCOL with support from SNV and KfW. Under this program, a total of
37,262 domestic size biogas plants are planned to be constructed by 2012.
Till October 2009, a total of 9,550 biogas plants have been constructed. 24 partner organizations
(PO), mostly NGOs and private entrepreneurs, have been engaged in this project implementation.
In a typical IDCOL financed biogas plant, subsidy is BDT 9,000 (USD 130), household's contribution
is 15% of the plant cost and the remaining is a micro-credit loan provided by IDCOL's POs at 10% -
12% interest rate (flat) and for a period of maximum two years. Since POs have limited source of
fund, IDCOL refinances 80% of the micro-credit loan at 6% interest rate and for a period of seven
years with one-year grace period.
Other Renewable Energy and Energy Efficiency Programs
Biomass Gasification Based Power Plants
Bangladesh produces about 40 - 45 million tons of paddy annually which produces 8 - 9 million
tons of rice husk, taking a 20% yield of husk. About half of the husk is used for energy applications
such as domestic cooking, rice parboiling etc. The remaining 4 million tons of husk may be used
for power generation using biomass gasification technology. This amount is sufficient for running
power plants equivalent to 400 MW of capacity considering 2 kg of husk consumption per kWh.
IDCOL has recently financed a 250 kW biomass gasification based power plant at Kapasia, Gazipur
on a pilot basis. The plant uses rice husk for power generation and supplies grid quality electricity
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to 500 households and commercial entities of that area. IDCOL has approved financing of a 400 kW
rice husk gasification based power plant along with a precipitated silica production plant. IDCOL has
a target to finance 12 biomass gasification based power plants equivalent to 5 MW capacity by 2012.
Biogas Based Power Plants
Biogas generated from poultry and cattle waste can also be used for power generation. Cattle
population (24 million) has the potential for 8.6 million m3 of biogas per day. Total poultry
population of Bangladesh is 233 million (2005-06) which also has a potential for production of 1.7
million m3 of biogas per day. 50% of this produced biogas has the capacity to run power plants
equivalent to 350 MW considering 0.752 m3 of biogas consumption per kWh.
IDCOL has financed a 50 kW biogas based power plant. Electricity generated from the plant will be
used to run a poultry farm of 30,000 birds. Liquid bio-fertilizer produced from the plant will be
used in crop production and fish farms. Another 250 kW biogas based power plant is being
considered for financing by IDCOL. IDCOL has set a target to finance 100 biogas based power
plants by 2012.
Solar Irrigation Pumps
IDCOL is in process of financing a 11.2 kW solar photovoltaic based submersible water pump to be
located at Shapahar, Naogaon. Once completed, the project is expected to provide irrigation
facilities to 12.56 hectares of land owned by 75 farmers. If successful, solar photovoltaic based
water pumping solution for irrigation will be implemented in larger scale in Bangladesh
Bangladesh Efficient Lighting Initiative Programme
In order to reduce electricity demand as well as green house gas emissions, the Government of
Bangladesh has recently undertaken an Efficient Lighting Initiative Programme under which 10.5
million incandescent bulbs will be replaced with compact fluorescent lamps (CFLs) with financial
support from the World Bank. IDCOL has been selected to act as the Coordinating/ Managing Entity
to avail CDM benefits for the programme. The first phase of the program is expected to start in
February 2010.
Energy sector in Bangladesh is capacity constrained both in terms of energy resources and energy
commodities. Natural gas reserves, country's largest source of indigenous fossil fuel and electricity
generation, are fast depleting. Considering the present huge power cut-off and scarcity of natural
gas, Government has set a target to meet 5% of total power demand by 2015 and 10% of total
power demand by 2020 from renewable energy sources. IDCOL's contribution in promoting
renewable energy technologies in Bangladesh will definitely supplement the Government's
renewable energy target and make it a sustainable energy source for the future.
financier with a vision
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financier with a vision
SHONCHALOK
Information and Communication Technology (ICT) sector has been recognized as a thrust sector of
the country by the Government of Bangladesh. Software has been categorized as one of the six
‘high priority’ export sectors. The potential of the ICT sector has been reflected in its 61% average
growth rate over the last 5 years. Currently, the BDT 1,224 crore market has about 400 players
employing more than 12,000 ICT professionals. While the commitment of the Government to boost
the ICT sector is reflected in its policy efforts and the vision of Digital Bangladesh by 2020,
availability of finance remains a challenge. Hence, IDCOL designed a facility called “Shonchalok”
under which short-term/working capital loans are being channeled through private commercial
banks and financial institutions to the software and IT solution providers of Bangladesh.
Purpose
IDCOL aspires to provide supports to the software and IT solution providers of Bangladesh in order
to promote and accelerate the growth of software and IT related services industry in Bangladesh for
the domestic and international market.
Members of Bangladesh Association of Software and Information Technology Services (BASIS)
Members of Bangladesh Computer Samity (BCS)
Members of any other registered ICT association of Bangladesh upon signing a Memorandum of
Understanding (MoU) with IDCOL.
Mutual Trust Bank Limited Trust Bank Limited
The Premier Bank Limited United Leasing Company Limited
Any other bank/financial institution can become a partner subject to signing a Financing
Agreement with IDCOL.
A software or IT company will be eligible to draw fund from the facility if it fulfils the following
criteria:
It has proven track record or in the IT business for at least 2 years;
It is a going concern supported by regular bank transactions;
It has confirmed and credible work order/contract for bill factoring or export or anything else as
may deem fit by the financing Bank/FI ;
Moreover, the Facility has to be approved by the management of Bank/FI.
Eligibility criteria for Software and IT Firms
Our Partners
Borrowers
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financier with a vision
Nature of Loans
Working capital finance against valid work
order/contract
Limit based revolving credit
Loan Amount
Up to BDT 1 crore at any point of time to an
organization (may be revised at periodical intervals).
Interest Rate
Maximum fixed interest rate would be 11.5% per
annum.
Other Loan Terms
As decided by banks/FIs
Prepayment
1% charge on the amount prepaid
Security/collateral
Assignment of billsCharge on fixed and floating
asset Corporate guarantee
Post-dated cheques Personal guarantee
Others i.e. third party guarantee
Loan Amount
Up to BDT 5 crore at any point of time
Interest Rate
Interest rate for each advance amount will be a fixed
rate of 7% p.a.
Loan Tenor
Maximum 5 years with 6 months’ grace period from
the first disbursement date
Repayment
Quarterly installment following level principal
method.
Prepayment
1% charge on the outstanding loan amount.
Security/collateral
Bank Guarantee/Letter of Comfort
Financing Terms for Banks and FIs
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financier with a vision
46
